how to find the budgeted amount for year 1  – Medical Equipment & Supplies Expenses

how to find the budgeted amount for year 1

Medical Equipment & Supplies Expenses

The following items will be needed in year one. Existing medical equipment and the surgery suite are being contributed by the facility and are considered in-kind contributions and therefore not included in the budgeted amount but must be shown as ana item in the budget. These expenses include:

Administrative, Technology and Other General Expenses

The program will convert existing clinical space so there are no space related expenses. The following expenses should be included in the budgeted amount.

• 6 tablet computers ($750 each)
• 2 professional printer, scanner fax machines ($650 each)
• office supplies ($250 per month for 6 months)
• 6 workstations ($ 1,100 each)
• monthly utilities ($120 per month for 6 months
• website creation and maintenance ($60 per month for 10 months)
• online and local marketing ($100 per month for 10 months)

Summary of Expenses Year 1

After completing each expense category, students will summarize all the projected expenses.

Description of Revenue and Funding

Use the following descriptions to input and calculate the dollar amounts for expenses.

The program director has used information from a similar practice to estimate revenue related to clinical procedures, consultations, and sales of supplements. The following are revenue projections:

• Nutritional & Dietary Services – 7,000 consultations and evaluations at $350 for each consultation
• Plastic Surgery Consultations – 25,000 consultations and evaluations at $500 for each consultation
• Clinical Procedures – 35,000 procedures at $25,000 each
• Surgeries – 7,000 procedures at $40,000 each
• Nutrition and Diet Supplements – 2,500 in product sales $200 for each sale

Answer Guide

To find the budgeted amount for year 1, you will need to sum up all the projected expenses while also considering the projected revenue from various sources. Here’s how you can calculate the budgeted amount step by step:

Step 1: Calculate Expenses

Medical Equipment & Supplies Expenses:

• Medical Examination Equipment: $50,000
• Ambulatory Surgery Suite: $175,000
• Medical Supplies: $87,000
• Procedural Devices: $120,000

Administrative, Technology, and Other General Expenses:

• 6 tablet computers ($750 each): 6 * $750 = $4,500
• 2 professional printer, scanner fax machines ($650 each): 2 * $650 = $1,300
• Office supplies ($250 per month for 6 months): $250 * 6 = $1,500
• 6 workstations ($1,100 each): 6 * $1,100 = $6,600
• Monthly utilities ($120 per month for 6 months): $120 * 6 = $720
• Website creation and maintenance ($60 per month for 10 months): $60 * 10 = $600
• Online and local marketing ($100 per month for 10 months): $100 * 10 = $1,000

Sum of Expenses: Total Medical Equipment & Supplies Expenses = $50,000 + $175,000 + $87,000 + $120,000 Total Administrative and Other Expenses = $4,500 + $1,300 + $1,500 + $6,600 + $720 + $600 + $1,000

Step 2: Calculate Revenue

Revenue Projections:

• Nutritional & Dietary Services – 7,000 consultations and evaluations at $350 each: 7,000 * $350
• Plastic Surgery Consultations – 25,000 consultations at $500 each: 25,000 * $500
• Clinical Procedures – 35,000 procedures at $25,000 each: 35,000 * $25,000
• Surgeries – 7,000 procedures at $40,000 each: 7,000 * $40,000
• Nutrition and Diet Supplements – 2,500 in product sales at $200 each: 2,500 * $200

Step 3: Calculate Total Revenue

Sum of Revenue: Total Revenue = Revenue from Nutritional Services + Revenue from Plastic Surgery Consultations + Revenue from Clinical Procedures + Revenue from Surgeries + Revenue from Supplements

Step 4: Calculate Budgeted Amount

Budgeted Amount = Total Expenses – Total Revenue

Substitute the calculated values from Steps 1 and 2 into the Budgeted Amount formula.

Please note that this is a simplified calculation, and actual budgets may involve more complexities and considerations. Additionally, ensure that you have accurate data and understand the revenue streams and expense categories fully to arrive at an accurate budgeted amount for year 1.